Purifying Charity
(Zakat)as deduced from the Qur'an and sunnah by jurists of
the Hanafi school

Conditions for Obligation

Free, adult, sane Muslims.

Possession of Nisab, and the passage
of one, uninterrupted lunar year over it (uninterrupted in the sense
that at no point during that period does the amount of money drop to zero.
However, if it drops below the Nisab without disappearing completely, the
year is not considered to be interrupted as long as the amount is over
the Nisab.at the period-end.)

Non-zakatable items : house one lives
in, cars one uses, clothes one wears, household furniture, weapons one
uses, jewels or other jewelry besides gold and silver unless acquired for
trade, interest (riba) - it must be disposed of.

Zakat on Gold, Silver and
Cash

Nisab for gold is 20 mithqal = 2.81
troy oz.= 87.48g

Nisab for silver is 200 dirhams = 19.69
troy oz = 612.36g (~$)

2.5% on the amount present at lunar
year-end.

Gold and silver jewelry is zakatable,
as are gold and silver utensils.

Loans to others are zakatable provided
they are guaranteed.

Zakat on Trade-Goods

Zakat due on any trade-goods (including
raw materials) if their value reaches the nisab value of gold or silver.
The year need not be uninterrupted.

Value of goods is added to value of
gold and silver for purposes of nisab.

Shares and bonds are zakatable on the
income from investment if the company deals with land and immovable property
the income and current share-price in other cases

Machinery, land, fixtures and fittings
are exempt fom zakat.

Zakat on Other ItemsProduce : 10%Animals.

Payment of Zakat- Intention is essential.

May only be given to the following
categories:

faqir : poor; one who has some money,
but not sufficient for his basic needs

miskin : destitute; one who has nothing

`amil `alayha : zakat collector, appointed
by the Caliph

mu'allafah qulubuhum : 'those whose
hearts are to be reconciled'

fi'r-riqab : to slaves to purchase their
freedom

gharim : one in debt for a legitimate
reason

fi sabilillah : in the path of Allah
= mujahidin.

ibnu's-sabil : wayfarer; one stranded
away from home, with no money available to him.

May be given to any or all of these
categories. It is preferred to give to one's needy relatives for whom one
is not financially responsible Islamically. It is disliked to give too
much or too little to any one individual.

May not be given to :

non-Muslims

well-off or rich people

father, grandfather, etc.

son, grandson, etc.

wife or husband

Banu Hashim and their freed slaves

an employee or laborer as wages

an institution

It is disliked to transfer zakat funds
to another country, unless there is a legitimate need

Etiquettes of Paying Zakat1. Understand the rationale - test of love
for Allah - ridding oneself
of miserliness - thankfulness
to Allah2. Pay it in secret, preferably.3. Do not ruin it by reminder and
injury.4. Do not consider it to be big.5. Spend the best of your wealth.6. Seek out the most pious, knowledgeable
and dignified people.